Chapter 4 Flashcards
Puffery
The use of absolute superlatives - “number one” or “best in the world” - hyperbole. It’s assumed that consumers recognize puffery
Unfair advertising
Acts or practices that cause or are likely to cause substantial injury to consumers, which is not reasonably avoidable by consumers themselves, and not outweighed by the countervailing benefits to consumers or competition.”
Vertical cooperative advertising
An advertising technique whereby a manufacturer and dealer share the expense of advertising
Consent order
An advertiser accused of running deceptive or unfair advertising agrees to stop running the advertisements in question, without admitting guilt.
Cease-and-desist order
An order from the FTC requiring the advertising in question to be stopped within 30 days so that a hearing can be held to determine whether the advertising is deceptive or unfair.
Affirmative disclosure
Important material absent from prior ads must be included in subsequent ads.
Corrective advertising
Where evidence suggests that consumers have developed incorrect beliefs about a brand based on deceptive or unfair advertising, the firm might be required to run corrective ads in an attempt to dispel those faulty beliefs.
Consumerism
The actions of individual consumers designed to exert power in the market place.
Behavioral targeting
The process of database development facilitated by online tracking markers that advertisers place on Web surfer’s devices in order to track that persons online behaviour.
Magic bullet hypothesis
Model of communications suggesting that an intended message is directly received and wholly accepted by the receiver. People were assumed to be “uniformly controlled by their biologically based ‘instincts’ and that they react more or less uniformly to whatever ‘stimuli’ came along”. The “Magic Bullet” theory graphically assumes that the media’s message is a bullet fired from the “media gun” into the viewer’s “head”.
Advertising educates consumers - pro
♣ gives us information we need to make smart purchasing
♣ decisions – yields economic power
gives us important info about social issues
♣ speeds up the learning curve for
consumers – we learn about products quicker
Advertising educates consumers - con
♣ gives us persuasion that pretends to be information – it’s deceptive, biased
♣ ultimately, the information is all self-serving
♣ advertising is intrusive and oppressive – it erodes learning
Advertising improves the standard of living - pro
♣ ads stimulate demand, increase production, and lead to cheaper prices
♣ ads help brands succeed; results in a greater variety of products
♣ ads fuel competition, which motivates brands to innovate and reduce prices
♣ ads aid the diffusion of innovations
Advertising improves the standard of living - con
♣ ads merely shuffle existing demand
♣ ad spending is a waste of resources
♣ ads confuse and frustrate consumers; they don’t enlighten them
♣ ads widen the gap between the “haves” and the “have nots”
Maslow’s hierarchy of needs
- “physiological”
- “safety”,
- “belongingness” and “love”
- “esteem”
- “self-actualization”
